Qualcomm joins tech layoff trend: Cuts 1,258 jobs in California amid industry challenges،
In 2023, global tech giants faced a tough time, with companies like X (formerly Twitter), Amazon, Google, Microsoft and Meta collectively laying off more than 50,000 employees. This unfortunate trend has, unsurprisingly, led to the CEOs of these companies receiving the lowest approval ratings. In addition to this wave of layoffs, Qualcomm, a leading mobile chip maker, has joined the ranks. CNBC (via Android titles), Qualcomm, known as the largest maker of smartphone chips, is cutting 1,258 positions at its offices in San Diego and Santa Clara. This represents approximately 2.5 percent of its global workforce. The layoffs, which should take effect around December 13, will mainly concern engineers.
The company had alluded to the layoffs in its latest earnings report, attributing them to “continued uncertainty in the macroeconomic and demand environment.“In simpler terms, Qualcomm is reducing its workforce to accommodate sluggish demand for its core product.
About 1,064 workers in its San Diego office and 194 workers in Santa Clara will be affected. Notably, there will be no facility closures at either location, according to recent documents filed with the California Employment Development Department.
The chip manufacturing industry has faced many production and supply chain challenges over the years, which has impacted Qualcomm’s business practices. In response, the company is considering restructuring actions to refocus on various aspects of the chip manufacturing industry. These actions are expected to be largely completed during the first half of fiscal 2024.
As Qualcomm approaches its next earnings report, it expects revenue to decline by about 19% in the current fiscal year. Popular tipster Ming-Chi Kuo adds to the concerns, suggesting that Qualcomm’s system-on-chip (SoC) shipments to China in 2024 will be 50 million units lower than this year, with a continued decline.
Additionally, Qualcomm is facing challenges with the Samsung Exynos 2400 gaining a higher market share than expected. Samsung is expected to use this deca-core chipset on some Galaxy S24 series phones next year instead of the Snapdragon 8 Gen 3. Another hurdle is that Apple plans to use its own 5G modem chip, replacing the one from Qualcomm, by 2025.
